Wrong Number

size=”2″ face=”Arial, Helvetica”>For those of you planning
to attend the TradingMarkets2000 First Annual Traders
Conference at the Venetian Resort, Hotel & Casino in Las
Vegas on October 13-15, I’ll be speaking on Saturday
afternoon following Jay Leno. I’ll also be at the cocktail
party Friday night. Sign up soon, as space is limited.

face=”Arial, Helvetica”>Vitesse Semiconductor
(
VTSS |
Quote |
Chart |
News |
PowerRating)
may present an opportunity for
covered calls. You can buy the stock for 87 1/4, and you can
sell the October 90 calls for 7 5/8. This represents
approximately a 12% return (more than 90% annualized, based
on 45 days until expiration) should the stock be called
away.

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Major oils
(
$XOI.X |
Quote |
Chart |
News |
PowerRating)
and oil service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating)
, both
mentioned recently, still look constructive, especially with oil at
life-of-contract highs. Continue to look for buying opportunities in calls and
call spreads here.

On the short side, telecom
(
$XTC.X |
Quote |
Chart |
News |
PowerRating)

appears to be resuming its downtrend after its recent pullback from lows. Look
for buying opportunities in puts and put spreads here.

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src=”https://tradingmarkets.com/media/images/Landry/xtc090500.gif”
width=”470″ height=”320″>

Continuing on the short
side, major drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating)
have never recovered from the Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating)

debacle. Look for buying opportunities in puts and put spreads here.

Looking
Ahead

The nets
(
$IIX.X |
Quote |
Chart |
News |
PowerRating)
continue to shape up and may
set up over the next few days.

Best
of luck with your trading on Wednesday!

P.S. Reminder:
Protective stops on every trade!